Global Business Process Outsourcing (BPO) Services Market Insights and Forecast to 2028

Business Process Outsourcing (BPO) Market 

The global Business Process Outsourcing (BPO) market size is projected to reach USD 241370 Million by 2027, from USD 180440 Million in 2020, at a CAGR of 4.2% during 2021-2027. Key drivers of the BPO market include the growing need for businesses to cut costs and focus on core competencies. 

The advent of cloud computing in business process outsourcing will fuel the growth of the BPO market during the forecast period.

Trends Influencing the Global BPO Market 

The increasing reliance of businesses on BPO

Industries across the globe are hiring third-party vendors to carry out specific business processes on their behalf. This ensures that organizations maintain their competitive edge and stay relevant. All non-core activities like customer services, finance, accounting, human resources, procurement, and KPO are outsourced directly to call centers. As the global business landscape becomes complex the prominence of the BPO market is rising. It reduces labor costs and eliminates the need for investing in additional office spaces. Companies can focus their resources on crucial tasks that ultimately add value and shortens time to market. Specialized knowledge of non-core activities delivers massive results. Furthermore, companies can react to market trends flexibly by bringing out a range of offerings faster. Call centers can mitigate problems and address customer queries in multiple languages across the world. This ultimately expands the global presence of enterprises. Additionally, this improves employee productivity, decreases time, and enhances operational efficiency.

Cloud computing

BPO providers have extended their services to cloud computing. Applications are made available over the network and can be used on demand. With cloud systems providing utility services companies do not require to invest in legacy IT hardware and software. Variable pricing and pay-per-use models offer flexibility and help in cutting long-term operational costs. Cloud allows BPO companies to scale up and adapt their infrastructure dynamically. Applications are upgraded in real-time. It significantly brings down processing time for data-intensive business workflows. Activities like documentation, image processing, and publishing take place at a reduced turnaround time. Furthermore, the universal presence of the internet and high reliability ensure seamless hosting of applications on the cloud. Downtime of complex infrastructure decreases dramatically. The entire process of investing and necessary installation of hardware, and software, training people, and managing upgrades are done exclusively by cloud-based BPO providers. These factors will surge the growth of the global BPO market in the forthcoming years. 

Outsourcing in many industrial segments

BPO services have extended across many business sectors. The BFSI industry faces unpredictable profitability issues and a complex regulatory environment. Banking operations have turned volatile and face problems in managing digital operating models. Credit services like origination, non-payment of loans, collaterals, and domestic and foreign transactions have become challenging. Outsourcing mitigates fraud and reduces the time required for credit approval. Customer experience is improved. This provides financial institutions the additional buffer to focus more on bank account management, cash, ATM management, etc. Moreover, compliance and risk management are top-notch priorities. KYC norms and Anti-money laundering systems are handled diligently. These diverse functionalities positively impact the growth of the BPO market.  On the other hand, Mobile network operators, broadcasters, and cable companies are able to delegate services related to order validation, catalog management, financial analysis, and quality control assessment. In the manufacturing sector, BPO enhances the supply chain process, reduces input costs, and helps solve the issue of staff shortage. Furthermore, in the healthcare industry, critical functions like insurance claim management, clinical outcome reviews, and patient support services are provided.

Confidentiality and intellectual property rights

The sharing of crucial business information with outsourcing companies gives rise to problems related to data security, and privacy. The growth prospects of the BPO industry is likely to get hampered as organizations are concerned regarding the way third-party providers handle shared information. Intellectual assets may get compromised degrading the company’s reputation. 

BPO Market Share Analysis

Based on type, the customer services segment is expected to dominate in the BPO market share owing to the growing presence of service centers across the world. Several customer queries are being handled via chats, social medial platforms, and emails. Outsourcing services are available for both online and offline support.

Based on application, the IT and telecommunication segment will be the most lucrative over the forecast period due to the increasing number of IT companies and rapid industrialization. There is a constant need for mitigating connectivity and security issues. 

Based on region, North America will witness considerable growth owing to the presence of key players and rising demand for BPO services amongst several industry verticals. 

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